Back to Ethereum: How Synthetix, Ronin and Celo saw the lig

Ethereum’s Evolving Landscape: A Resurgence for High-Value DeFi

The blockchain ecosystem is witnessing a significant shift, with prominent projects re-evaluating their positions relative to Ethereum. While some high-value decentralized finance (DeFi) protocols, such as Synthetix, have maintained their presence on the Ethereum mainnet, others like Ronin and Celo are transitioning to become Layer 2 (L2) solutions within the Ethereum ecosystem.

This movement highlights a growing recognition of Ethereum’s foundational strength, particularly for high-value DeFi. The Ethereum L1 maintains a substantial lead in Total Value Locked (TVL), significantly surpassing its closest competitors. Simultaneously, the L2 model offers compelling advantages, including substantial cost savings and enhanced network effects for projects integrating into the Ethereum architecture.

Projects Embrace Ethereum’s L2 Ecosystem

Several notable shifts underscore this trend:

• Celo’s Strategic Transition: Earlier this year, the mobile-first blockchain Celo opted to discontinue its independent validator network. This move marked its transition to an L2 solution on Ethereum, leading to estimated annual operational cost savings of nearly $7 million.
• Ronin’s Homecoming: In a significant announcement, the blockchain gaming platform Ronin revealed its plans to return to the Ethereum ecosystem by early 2026. This decision comes after network congestion previously led its popular game, Axie Infinity, to move off the Ethereum mainnet. Jeffrey “Jiho” Zirlin, co-founder of Sky Mavis, the creator of Ronin and Axie Infinity, commented on Ethereum’s progress in delivering on its scaling roadmap.